Tuesday, 24 April 2007

Questions (209, 210, 211, 212, 213)

Gerard Murphy

Question:

232 Mr. G. Murphy asked the Minister for Finance if a certificate of standard rate cut point and tax credits from the Revenue Commissioners will be issued for a person (details supplied) in County Cork. [14099/07]

Paudge Connolly

Question:

233 Mr. Connolly asked the Minister for Finance if he will ensure an adequate income for older women by abolishing VAT on fuel and on homecare costs; and if he will make a statement on the matter. [14134/07]

The position is that the VAT treatment of goods and services is governed by EU law with which Irish VAT law must comply. The rate of VAT that applies to a particular good or service is determined by the nature of the good or service, and not by the status of the customer. There is no provision in European VAT law that would allow the application of an exemption or reduction of VAT on supplies of fuel to customers over a certain age. However, I would point out that in last years Budget the excise duty on Kerosene and LPG for home heating was reduced to zero with effect from the 1st January 2007. This measure follows through on the commitment in Budget 2006 when these rates were halved. This measure is estimated to cost €24 million in 2007.

In addition, late last year, in response to energy price increases, the Government took steps to improve the social welfare Household Benefits Package scheme by increasing the amount of electricity or gas entitlements covered under the scheme. This will benefit over 340,000 social welfare recipients and cost almost €50 million per annum.

In relation to the VAT treatment of homecare services, following an amendment to the VAT Act 1972 introduced in this years Finance Act, homecare services provided by private operators which are recognised by the HSE are exempt from VAT. This is an important measure designed to support the Government's initiative aimed at supporting the elderly and others who wish to continue living at home.

I have been advised by the Revenue Commissioners that the PAYE balancing statements which outline the taxpayer's liability to income tax for the years 2004, 2005 and 2006 was issued to him on 11 April 2007, together with cheques in settlement for overpayments arising in 2005 and 2006. For the year 2007, an amended certificate of tax credits and standard rate cut off point issued to the taxpayer on 10 April 2007, with appropriate adjustments made for the age tax credit and the tax liability due on his Old Age Contributory Pension.

Jan O'Sullivan

Question:

235 Ms O’Sullivan asked the Minister for Finance if he will address the unfairness of stamp duty on credit cards, being based on the number of cards held, rather than the amount owed; and if he will make a statement on the matter. [14143/07]

Stamp duty on credit card accounts has existed since 1982. The current annual rate of stamp duty is €40. The system of imposing a flat rate of stamp duty is simple, as issues such as the number of transactions on an account, the balances outstanding at different times and the value of transactions do not affect the amount payable. I have no plans to introduce changes which would make the system more complicated.

Richard Bruton

Question:

236 Mr. Brutonasked the Minister for Finance if, in the scheme for VAT refunds on aids and appliances used by people with disabilities, he will include mobile homes to be used for holidays by the disabled person in the scheme; and if he will make a statement on the matter. [14168/07]

I am informed by the Revenue Commissioners that paragraph (xixa) of the Second Schedule to the VAT Act 1972 (as amended) provides for the zero-rating of a range of medical equipment and appliances for use by disabled persons. In addition, to the zero-rating of the medical equipment specified in the Second Schedule, under the Value-Added Tax (Refund of Tax) (No. 15) Order 1981 repayment may be claimed of the VAT paid on certain special aids and appliances for people with disabilities. However, aids and appliances, which have not been specially constructed or adapted, but might reasonably be treated as having been adapted having regard to the particular disablement of a person may qualify. Therefore a VAT refund may be available on the cost of necessary adaptations to a caravan but not for on the overall cost of a caravan. The relief is also available in certain circumstances to persons other than disabled persons who purchase such goods for handing over to a particular disabled person.

Further information on VAT (Refund of Tax) (No. 15) Order, 1981 is available from VAT Unregistered Repayments Section, Office of the Revenue Commissioners, 3rd Floor, River House, Charlotte Quay, Limerick.

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